Problem
Python acquires 80% of the voting stock of Slither on January 1, 2017 for $1,500,000. The fair value of the noncontrolling interest is $350,000. Slither's balance sheet at the date of acquisition is as follows:
|
Book Value
Dr (Cr)
|
Fair Value
Dr (Cr)
|
|
Tangible assets
|
$5,000,000
|
$3,500,000
|
|
Identifiable intangibles
|
-
|
2,000,000
|
|
Liabilities
|
(3,000,000)
|
(3,000,000)
|
|
Capital stock
|
(500,000)
|
-
|
|
Retained earnings
|
(1,400,000)
|
-
|
|
Accumulated other comprehensive income
|
(100,000)
|
|
On the consolidation working paper at January 1, 2017, what is the credit to Investment in Slither for eliminating entry (R)?